| Strategic aim |
Our strategy |
KPI measure and description |
Performance in 2009 |
Plans for 2010 |
Deliver a quality
construction service |
- Extend Perfect Delivery and Customer Experience quality programmes
- Improve Perfect Delivery performance
- Improve the quality of supply chain by using accredited subcontractors and suppliers
- Attract, retain and develop talented employees
|
- Perfect Delivery scores
Measured by the percentage of projects achieving Perfect Delivery
- Approved supply chain coverage
Measured by the percentage of the Group’s spend that is through approved suppliers
- Staff turnover/retention
- Training level
Measured by average number of training days per employee
|
- 84% of projects achieved Perfect Delivery (2008: 84%)
- Average number of training days is 5 (2008: 5)
|
- Increase the number of projects that achieve Perfect Delivery
- Develop standard measures of customer and employee satisfaction across the Group
- Developing KPIs to measure the Group’s spend through approved suppliers
- Develop KPIs to measure staff retention
|
| Operate safely and sustainably |
- Continue to develop Group safety culture
- Develop system to meet Carbon Reduction Commitment obligations
|
- Accident Incident Rate (‘AIR’)
Measured by the number of reported incidents expressed per 100,000 persons employed
- Carbon dioxide emissions Calculated as tonnes equivalent CO2
|
- The AIR for 2009 is 519 (2008: 719)
- Carbon dioxide emissions are established for the first time for 2009 as 27,466 tonnes equivalent (2008: n/a)
|
- To make further progress in reducing the AIR
- To reduce the Group’s carbon footprint
- To establish an efficient reporting system to meet our obligations under the CRC Energy Efficiency Scheme
|
| Grow profitable businesses |
- Maintain healthy pipeline of projects
- Manage resources and cost base efficiently
- To expand the Group’s capability
|
- Forward order book
Measured by future revenue from legally committed contracts plus a prudent estimate of future revenue under framework agreements
- Operating margin
Measured by profits from operations before amortisation of intangible assets, expressed as a percentage of revenue
- Overheads percentage
Defined as Group overheads expressed as a percentage of revenue
|
- Forward order book currently stands at £3.2bn (2008: £3.7bn)
- Operating margin of 2.0% (2008: 2.3%)
- Established responsive maintenance service at Affordable Housing
- Increased Fit Out’s proportion of activity outside of London to 32% (2008: 22%)
- Overheads percentage is 7.7% (2008: 7.3%)
|
- Increase forward order book
- Improve Group operating margin
- To maintain or reduce overheads as a percentage of revenue
|
| Generate cash resources to develop the Group's divisions and fund aquisitions |
- Maintain tight control of working capital
- Ensure the Group has sufficient committed banking facilities available
|
- The average cash balances at bank reported daily
- Year end cash balance
- Operating cash conversion
|
- The average cash balance for the year was in line with our expectations at £31m (2008: £77m)
- Year end cash balance of £118m (2008: £120m)
- £100m of banking facilities put in place through to June 2012
- Five year rolling cash conversion at 94% (2008: 119%)
|
- To improve average cash balance
- To improve five year operating cash conversion
|
| Generate strong shareholder returns |
- Generate superior returns by developing positions of market leadership in each of the Group’s divisions
|
- Adjusted earnings per share (‘EPS’)
- Dividend per share
|
- Adjusted EPS down 27% to 93.9p (2008: 127.8p)
- Dividend per share maintained at 42.0p (2008: 42.0p)
|
- To increase adjusted EPS over the longer–term
- To maintain a progressive dividend policy
|
